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22 August 2013

Berita Semasa 22 Ogos 2013 ...

Gold's correlation with S&P 500 turns negative: Sharps Pixley

Since the recent trough on 27 June, the gold futures rebounded 12.34 percent while the S&P 500 Index only climbed 3.29 percent, reflecting the market's perception of the value in gold, Sharps Pixley report said.

Image Courtesy of nirots at FreeDigitalPhotos.net

The correlation betwen S&P 500 and gold has turned negative since the gold prices bottomed at the end of June, according to a daily market view from Sharps Pixley.

"The most recent U.S. weekly jobless claims declined to 320,000, the lowest level since October 2007. As the concern of the Fed's QE tapering mounts, bond yields around the world surge. Weaker earnings reports in the U.S. and increasing violence out of Egypt have hurt global stock markets in the past two days. The stock investors are not much cheered by the end of the Euro region recession, with the Q2 GDP rising 0.3 percent," the report added.

Since the recent trough on 27 June, the gold futures rebounded 12.34 percent while the S&P 500 Index only climbed 3.29 percent, reflecting the market's perception of the value in gold, Sharps Pixley report said.

The rise in bond yields in major countries around the world, weak dollar and equities have provided the right ambience for gold to re-assert itself as an alternative asset.

According to filings made with US Securities and Exchange Commission(SEC), billionaire investor John Paulson solder over half of his gold ETF positions during the second quarter of 2013 while other hedge fund managers including George Soros and Daniel Loeb got rid of their positions.